[Double L]

Economics is apart of the curriculum for my management degree. :wink:

[Double L]

I just made myself look like a total dofus! ops: Now I remember what S&L means, stocks and loans. ops: One of my teachers in school was telling our class that we'll never have a depression as great as the 30's. I think it was our Government or history class I don't remember off the top of my head. Don't jump on my case for what someone else said I didn't say I believed them or not!

[Rev.Vassago]

Originally Posted by gordoUSA

The disturbing part is that they tried to raise "private" money and had no takers. Thus the gov't necessity to step in. Like the Rev. said, those that know got out, and it seems they werent willing to risk "their" money to jump back in no matter how attractive the deal "appears."

We are in the midst of that economic shift right now. This one is far worse than the dot com balloon of the 90's, because this one deals with tangible overvalued items rather than imaginary overvalued items. The market will correct itself eventually, which you are seeing happen right now. Oil is on the decline, and I expect that gold will soon follow. What we have to worry about this time around is massive deflation. It will happen (it's been happening for a few years already in the housing sector), but hopefully it can be controlled. Government assistance, like this AIG "bailout", are an attempt to control it.

[Rev.Vassago]

Originally Posted by Double L

Now I remember what S&L means, stocks and loans.

Sorry, wrong answer. Try searching "S&L crisis". Good reading.

[Double L]

I thought this AIG buyout was just another government attempt of wasting money and saving a company that should fail cause they got themselves in this mess.

[Rev.Vassago]

Originally Posted by Double L

I thought this AIG buyout was just another government attempt of wasting money and saving a company that should fail cause they got themselves in this mess.

It's anything but.

[Double L]

Originally Posted by Rev.Vassago

Sorry, wrong answer. Try searching "S&L crisis". Good reading.

I didn't get a chance to read about this yet, didn't even know it happened. Now you know schools only teach about past history. It seems like they start at the 1800's and never get past the 1960's. Dang near all the text books from a few years ago are updated to atleast Sept 11, 2001.

[Useless]

Originally Posted by RebelDarlin

X2

X3; Preach on, Rev!!

Remember, though, that the people must also accept part of the blame for our current troubles by buying things they didn't need, with money they didn't have, often getting themselves upside down on everything from car and truck loans, to boat and RV loans, to home loans with a 130% debt to asset ratio, all too often financed by ARM's and "Interest Only" loans that they knew would be adjusting upward.

If that wasn't enough, people treated credit card debt the same way the government treats deficit spending...... they forgot that the debt has to be repaid.

For their part, the lending institutions made these loans, while selling peopl on the motion that borrowing against the equity in their homes was an easy solution to financial mismanagement. The Federal Government chose to turn a blind eye, and paint a convoluted picture of a growing economy, neglecting to point out that the "growth" we have experienced for almost the last ten years was not being fueled by savings or investment, but rather by debt.

The handwritting for this catastrophe has been on the wall for almost a decade now. The American Sheeple were drunk on their credit fueled spending sprees, the lending institutions doled out loan money all to freely to borrowers ability to repay was clearly in doubt, and our government chose political expediency over sound regulation. Now, the chickens are coming home to roost, and the worst is yet to come!!

BTW, the RED INK is in honor of the ink that is flowing from Main Street, Wall Street, State Governments, and Washington, D.C.

Little wonder we are drowning in it!!

[Double L]

Originally Posted by Useless

Remember, though, that the people must also accept part of the blame for our current troubles; they treated debt the same way the government treats it...... they forgot that it has to be repaid.

Now, their chickens are coming home to roost, and the worst is yet to come!!
[/color]

X2

[gordoUSA]

I believe this current crisis will be around longer than most of the Wall Street "experts" are willing to admit. The trouble is going to find the market value of so many properties with "exotic" loans. Then find the potential exposure some institutions have with the over leveraged CDO's they are holding based on the same overvalued "exotic" loans, hoping the insurers can pay before they go under. It will be a most complicated task and the final numbers may be anyones guess at the moment.

Then around next spring the credit card debt. Closing in on a cool TRILLION dollars now. Maybe more than that now.